Turnbull’s huge negative gearing blunder
at 7:52 am on June 17, 2016 | 47 comments
http://www.macrobusiness.com.au/2016/06/turnbulls-huge-negative-gearing-blunder/
By Leith van Onselen
If only Malcolm Turnbull had stared down the property lobby and held firm to his long held opinion that negative gearing and its partner-in-crime – the capital gains tax discount – were a “sheltering tax haven” that is “skewing national investment away from wealth-creating pursuits, towards housing”, and have caused a “property bubble”.
Then Turnbull would have opted for reform of these tax lurks, without jeopardising his electoral standing.
You see, ABC’s Vote Compass has revealed that more Australians (47%) are in favour of reforming negative gearing than maintaining the status quo (41%):
Surprisingly, however, it is the oldest members of society that want negative gearing to be reformed (59%):
But unsurprisingly, it is the wealthiest members of society that want to keep negative gearing to line their own pockets (51%):
Whereas Labor voters are more in favour of change (63%) than Coalition voters (31%) – no surprise there:
While the data is no slam dunk either way, it does highlight why Malcolm Turnbull should not have ‘sold his soul’ to the property lobby. He could have pursued reform – as he previously advocated – without risking the election. In fact, judging by the above polling, he might even have gained a few votes.
Instead, Australia has itself a limp-wristed Prime Minister that is too afraid to stare down the rent-seekers and pursue reform in the national interest – precisely the type of leader Australia does not need in the challenging years ahead – and Turnbull’s own standing has collapsed.